Mark Carney thrust the Bank of England into the Brexit debate again, saying he’ll give a thumbs up -- or down -- to any divorce deal that Prime Minister Theresa May reaches with the European Union. “We will have to give our view on whether or not the arrangements are consistent with our ability to fulfill our statutory responsibilities,” the BOE governor said Tuesday, testifying to lawmakers on the Treasury Committee in Farnborough, U.K. The central bank is responsible for maintaining monetary and financial stability.

The Bank of England might need to raise British interest rates somewhat sooner than Deputy Governor Dave Ramsden had expected if wage growth picks up early this year, according to a newspaper interview released on Saturday. Ramsden was one of two policymakers who opposed the BoE’s decision in November to raise interest rates for the first time in a decade, but appears to have shifted his stance somewhat in comments published by the Sunday Times newspaper.

Signs that British wages are beginning to grow more quickly, along with ongoing global economic strength, have bolstered the case for higher interest rates, Bank of England policymaker Gertjan Vlieghe said on Monday. Vlieghe said there was “increased evidence that tight labour markets are finally starting to have some upward effect on wages”.

There were no data releases from the UK today, with focus being on domestic monetary developments. The Bank of England (BoE) announced its first rate hike in more than a decade in November, amid strong inflationary pressures and a low level of unemployment. At the time, it also signaled its intention to gradually tighten its monetary policy over the coming years. Thus, markets have priced another rate hike in for next year, but some believe there could be two interest rate increases in 2018. One key factor for the central bank is Brexit. At the moment, the U.K.'s decision to leave the EU has mainly led to a depreciation of the pound.

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